PROJECT REPORT

ON

BUSINESS OPPURTUNITY IN LIFE

INSURANCE

In Partial Fulfillment of The Requirement For The Degree

OF
BACHELOR OF BUSINESS ADMINISTRATION
SESSION (2012-13)
SUBMITTED BY:
GURSEWAK SINGH
MBA(IC) - 6TH Sem.
ROLL NO:-614

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UNIVERSITY SCHOOL OF
BUSINESS STUDIES

GURU KASHI CAMPUS,

TALWANDI SABO
ACKNOWLEDGEMENT

It gives an immense pleasure to me to present this report, a written form of the practical
experience I have undergone.
The project on BUSINESS OPPURTUNITY IN LIFE INSURANCE would not
have seen the light of the day without the following people and their priceless support and
cooperation. Hence I extend my gratitude to all of them. I am greatly indebted to them for
taking great pains in guiding me.
I would like to thank HDFC STANDARD LIFE INSURANCE for giving me an
opportunity of learning and contributing through this project.
During the actual project work, Mr.BUTA SINGH (Channel Development Manger)
Project Guide, who set the ball rolling for my project. He has been a source of inspiration
through his constant guidance; personal interest; encouragement and help. I convey my sincere
thanks to him. In spite of his busy schedule he always found time to guide me through the
project. I am also grateful to him for reposing confidence in my abilities and giving me the
freedom to work on my project. Without his invaluable help I would not have been able to do
justice to the project.

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The project couldnt have been completed without timely and vital help of other office
staff. Special thanks to Mr.BUTA SINGH (Channel Development Manger) for his invaluable
guidance, keen interest, cooperation, inspiration, and of course moral support through my
project session.

TABLE OF CONTENTS
Introduction to Insurance ----------------------------------------------------------------4
Indian Insurance Industry----------------------------------------------------------------11
SWOT Analysis of Insurance industry-------------------------------------------------16
Company Profile ------------------------------------------------------------------------18
SWOT analysis of HDFC SL------------------------------------------------------------25
Potential of insurance Business in India -----------------------------------------------28
Research Design --------------------------------------------------------------------------43
Conclusion ---------------------------------------------------------------------------------64
Marketing Problem -----------------------------------------------------------------------66
Bibliography-------------------------------------------------------------------------------69
Questionnaire------------------------------------------------------------------------------70

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INSURANCE
Life is a roller coaster ride and is full of twists and turns. You cannot take anything for granted
in life. Insurance policies are a safeguard against the uncertainties of life.
Insurance is a promise of reimbursement in the case of loss; paid to people or companies so
concerned about hazards that they have made prepayments to an insurance company. It is
basically a contract that provides compensation for specific losses in exchange for a periodic
payment
An insurance contract or policy will set out in detail the exact circumstances under which a
benefit payment will be made and the amount of the premiums.
Insurance is system by which the losses suffered by a few are spread over many, exposed to
similar risks. Insurance is a protection against financial loss arising on the happening of an
unexpected event. Insurance policy helps in not only mitigating risks but also provides a
financial cushion against adverse financial burdens suffered.
Insurance policies cover the risk of life as well as other assets and valuables such as home,
automobiles, jewelry et al. On the basis of the risk they cover, insurance policies can be
classified into two categories:

Life Insurance Policies

General Insurance Policies

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Life Insurance
Life is very fragile and death is a certainty. We cannot control the uncertainties of life. But, we
can cover the risks surrounding us. Life insurance, simply put, is the cover for the risks that we
run during our lives. It protects us from the contingencies that could affect us.
Life insurance is not for the person who passes away, it for those who survive. It is the
responsibility of every bread earner to guard against the events that could affect the family in
the unfortunate circumstance of his / her demise. Thus, having a life insurance policy is very
vital. Before going for a life insurance policy it is imperative that you know about various
types of life insurance policies. Major among them are:

Endowment Policy

Whole Life Policy

Term Life Policy

Money-back Policy

Joint Life Policy

Group Insurance Policy

Loan Cover Term Assurance Policy

Pension Plan or AnnuitiesUnit Linked Insurance Plan

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Endowment Policy
An endowment policy covers risk for a specified period, at the end of which the sum assured is
paid back to the policyholder, along with the bonus accumulated during the term of the policy.
An endowment life insurance policy is designed primarily to provide a living benefit and only
secondarily to provide life insurance protection. Therefore, it is more of an investment than a
whole life policy.
Endowment life insurance pays the face value of the policy either at the insured's death or at a
certain age or after a number of years of premium payment. Endowment policy is an
instrument of accumulating capital for a specific purpose and protecting this savings program
against the saver's premature death.

Group Insurance
Group insurance offers life insurance protection under group policies to various groups such as
employers-employees, professionals, co-operatives, weaker sections of society, etc. It also
provides insurance coverage for people in certain approved occupations at the lowest possible
premium cost.
Group insurance plans have low premiums. Such plans are particularly beneficial to those for
whom other regular policies are a costlier proposition. Group insurance plans extend cover to
large segments of the population including those who cannot afford individual insurance.
A number of group insurance schemes have been designed for various groups. These include
employer-employee groups, associations of professionals (such as doctors, lawyers, chartered

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accountants etc.), and members of cooperative banks, welfare funds, credit societies and
weaker sections of society.

Money Back Policy

Money back policy provides for periodic payments of partial survival benefits during the term
of the policy, as long as the policyholder is alive.
They differ from endowment policy in the sense that in endowment policy survival benefits are
payable only at the end of the endowment period.
An important feature of money back policies is that in the event of death at any time within the
policy term, the death claim comprises full sum assured without deducting any of the survival
benefit amounts, which may have already been paid as money-back components. The bonus is
also calculated on the full sum assured.

Pension Plan
A pension plan or an annuity is an investment that is made either in a single lump sum payment
or through installments paid over a certain number of years, in return for a specific sum that is
received every year, every half-year or every month, either for life or for a fixed number of
years.
Annuities differ from all the other forms of life insurance in that an annuity does not provide
any life insurance cover but, instead, offers a guaranteed income either for life or a certain
period.

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Typically annuities are bought to generate income during one's retired life, which is why they
are also called pension plans. By buying an annuity or a pension plan the annuitant receives
guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's
estate in addition to the payments during the annuitant's lifetime.

Term Life Insurance Policy

Term life insurance policy covers risk only during the selected term period. If the policyholder
survives the term, the risk cover comes to an end. Term life policies are primarily designed to
meet the needs of those people who are initially unable to pay the larger premium required for
a whole life or an endowment assurance policy
No surrender, loan or paid-up values are granted under term life policies because reserves are
not accumulated. If the premium is not paid within the grace period, the policy lapses without
acquiring any paid-up value.

Unit Linked Insurance Plans (ULIP)

Unit linked insurance plan (ULIP) is life insurance solution that provides for the benefits of
protection and flexibility in investment. The investment is denoted as units and is represented
by the value that it has attained called as Net Asset Value (NAV). The policy value at any time
varies according to the value of the underlying assets at the time.
ULIP provides multiple benefits to the consumer. The benefits include:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Death due to accident

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Disability

Critical Illness

Surgeries

Liquidity

Tax planning

Whole Life Insurance Policy

A whole life policy runs as long as the policyholder is alive. As risk is covered for the entire
life of the policyholder, therefore, such policies are known as whole life policies. A simple
whole life policy requires the insurer to pay regular premiums throughout the life. In a whole
life policy, the insured amount and the bonus is payable only to the nominee of the beneficiary
upon the death of the policyholder. There is no survival benefit as the policyholder is not
entitled to any money during his / her own lifetime.

General Insurance
General Insurance provides much-needed protection against unforeseen events such as
accidents, illness, fire, burglary et al. Unlike Life Insurance, General Insurance is not meant to
offer returns but is a protection against contingencies. Almost everything that has a financial
value in life and has a probability of getting lost, stolen or damaged can be covered through
General Insurance policy.
Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty
and also one's liability towards others can be covered under general insurance policy. Under
certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability
Insurance have been made compulsory.

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A Brief history of the Insurance Sector

In today's hectic world, there is uncertainly in every move that we make. Life is not as healthy
as it should be. In the rat race, in order to live a better quality of life, to earn money and more
money we all have somehow forgotten to live the present. Hence by this entire bargain, our
future remarkably seems all the more confusing and uncertain.
Insurance in India has its history dating back till 1818, when Oriental Life Insurance Company
was started by Europeans in Kolkata to cater to the needs of European community. Preindependent era in India saw discrimination among the life of foreigners and Indians with
higher premiums being charged for the latter. It was only in the year 1870, Bombay Mutual
Life Assurance Society, the first Indian insurance company covered Indian lives at normal rate.
At the dawn of the twentieth century, insurance companies started mushrooming up. In the year
1912, the Life Insurance Companies Act, and the Provident Fund Act were passed to regulate
the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certified by an actuary.
However, the disparage still existed as discrimination between Indian and foreign companies
For over 50 years, life insurance in India was defined and driven by only one company- the
Life Insurance Corporation of India (LIC). With the Insurance Regulatory and Development
Authority (IRDA) Bill 1999 paving the way for entry of private companies into both life and
general sectors there was bound to be new-found excitement- and new success stories. Today,
their cumulative share has crossed 23% (source: IRDA), far

exceeding expectations. Clearly

insurance is on a growth path. The percentage of premium income to GDP which was just

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2.3% in 2000-01 rose to 3.3% in 2002-03; and life insurance has emerged as the dominant
contributor to this growth.

The industry presented a huge opportunity. Life insurance penetration, for instance, was at an
abysmal 22% of the insurable population. However, private players have had to rise to many
challenges. They were faced with attitudinal barriers towards the category and the perception
that insurance was only a tax saving tool. Insurance had lost it basic rationale: protection. It
wasnt surprising then that its potential lay frozen and unexploited. The challenge for private
insurance players was to change the established category driver and get customers to evaluate
life insurance as an investment-cum-protection tool.

Brief Review of Scenario Insurance

Insurance in India started without any Regulation in Nineteenth century.
It was story of a typical colonial era. A few British companies dominated the market mostly in
large urban centers.
Insurance was nationalized mainly on 3 counts First, Indian lives were not insured. Second,
even if they were insured, they were treated as substandard lives and extra premium was
charged. Third, there were gross irregularities in the functioning of Life insurance was
nationalized in the year 1956, and then general insurance was nationalized in the year 1972. In
1999, the private insurance companies were allowed back again into

insurance sector with

maximum cap of 26 percent foreign holding, presently it has increased to 49 percent.

British introduce to India, with the establishment of the Oriental Life Insurance company in
Calcutta.
1850 Non life insurance debuts, with Triton Insurance Company.
1987 Bombay Mutual life Assurance Society is the first Indian-owned life insurer
1907 Indian mercantile Insurance is the first Indian non-life insurer.

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1912 The Indian life assurance companies act enacted to regulate the life insurance business.
1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier
act.
1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and
provident societies.
1956 Government sets up LIC
1972 Non life insurance nationalized, GIC set up.
1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up to draw up a
blue print for insurance sector reforms.
1994 Malhotra Committee recommends re-entry of private players, autonomy to PSU insurers.
1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.
2000 IRDA starts giving licensed to private insurers
2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling
non-life claims in the cashless mode.

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INDUSTRY REFORMS
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament
in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has
fastidiously stuck to its schedule of framing regulations and registering the private sector
insurance companies. Since being set up as an independent statutory body the IRDA has put in
a framework of globally compatible regulations.
The other decision taken simultaneously to provide the supporting systems to the insurance
sector and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of institutions for imparting training
to agents has also ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.

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SWOT ANALYSIS OF INSURANCE INDUSTRY

Strengths
Upcoming of various insurance companies with innovative products.
Changing investors perception in favor of INSURANCE Industry
Using banks as channel of distribution.
Insurance give financial security to investors and his family.
Increasing awareness among investors for insurance.
Investors can claim tax rebate u/s 80C and 10(10D).
Insurance provides protection against uncertainties.
Insurance provides saving schemes with good returns.
Availability of different products suiting different kinds of investors.
Diversification creates safety.
Growing capital market with increase in FDI & coming up of more MNC.

Weakness
Lack of trust among public in private sector.
No Guaranteed return.
Absence of well informed, educated selling by financial intermediaries.
Limited knowledge based differential. Distributors typically tend to sellwhat
sellsand not whats good or what is required
Wrong attitude of intermediaries, they market with the short term objectives.

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 Low penetration of private companies in small towns.

Service not up to the mark as per the expectations.

Opportunities
Lot of scope for progress as this sector of business is still in its infancy stage.
Increasing purchasing power
Increased standard of living
Can target specific niches, which are poorly served or are not served at all.
Can introduce innovative products offering a right mix of flexibilities/risk/return
depending on the appetite of the customer
Growing Corporate India
Has not still reached the interiors of rural India.
So, Huge untapped market in rural areas.
Focus on professional services segment.
Tax free returns.
Rising stock market which promotes the interest of people in unit linked plans.

Threats
Increased competition with upcoming of new insurance companies.
Availability of other saving instruments like Fixed Deposits, Recurring Deposits.
Availability of other investment instruments such as gold, real estate, equity share etc
Absence of need based selling. Investment options are today sold as products &
not as solutions.
Rising rates of returns on Fixed Deposits which are as high as 10.5%.

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 As a cost cutting measure, corporate have started reducing premium in Group insurance
plans.

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HDFC STANDARD LIFE INSURANCE

HOUSING DEVELOPMENT FINANCE CORPORATION
LIMITED (HDFC)
Founded in 1977, HDFC is today the market leader in housing finance in India and has
extended financial assistance to more than 15 lakh homes. HDFC has more than 110 offices in
India presently. It also has an international office in Dubai and 3 Service Associates in Kuwait,
Qatar, and the Sultanate of Oman. HDFCs asset base amounts to over Rs. 28,000 cores. Its
financial strength is reflected in highest safety ratings of FAAA and MAAA awarded by
CRISIL and ICRA two of Indias leading credit rating agencies respectively, for the last 6
years consequently. It has a depositor base of over 11 lakh customers and a deposit agents
force of over 46,000. of the total deposits, 73% are sourced from individual and trust
depositors. Which demonstrates the tremendous confidence that retail investors have in the
company?
Being an institution that is strongly committed to the highest standards of quality and
excellence, HDFC has won several accolades in the past few years such as Ramakrishna Bajaj
National Quality Award for the year 1999.

THE HDFC GROUP

HDFC commenced operations as a mortgage bank; it raised large wholesale resources
(domestic and international) and lent primarily to individual households. In mid 1991, HDFC
entered the retail deposit market by offering savings and investment opportunities to

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households. Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since
emerged as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs. 120 crores. The net worth of the
corporation is Rs. 28,000 crores.
SUBSIDIARY COMPANIES

HDFC Standard Life Insurance: HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance
companies, which offers a range of individual and group insurance solutions. It is a joint
venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's
leading housing finance institution and a Group Company of the Standard Life, Europes
largest mutual life assurance company (UK). HDFC as on March 31, 2007 holds 81.9 per cent
of equity in the joint venture.

HDFC Developers Limited

HDFC promoted a wholly owned subsidiary company; HDFC Developers Limited, to
undertake housing projects on a selected basis in various regions of the country. HDFC
Developers Limited has also undertaken a number of projects for the office premises of the
corporation. It is also being engages as a consultant to a number of residential and commercial
projects.

HDFC Investments Limited

HDFC promoted a wholly owned subsidiary company; HDFC Investments Limited
(HIL), to undertake investments in stocks, shares, debentures, and other securities. The Reserve
Bank of India under the category of investment Company has registered HIL as a Non
Banking Insurance Company (NBFC). HIL was set up with an intention of being the
investment arm of HDFC.

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HDFC Realty Limited

HDFC Holding Limited

HDFC Asset Management Company Limited

HDFC Trustee Company Limited

HDFC Finance Limited

HDFC Standard Life Insurance Co.

Company Profile:
HDFC Standard Life Insurance Company was incorporated on 14th August 2000, under the
name of HDFC Standard Life Insurance Company Limited.
HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest
housing finance institution and Standard Life Assurance Company, Europe's largest mutual life
company. It was the first life insurance company to be granted a certificate of registration by
the IRDA on the 23rd of October 2000
HDFC Ltd. and Standard Life Group, UK, have a long and close relationship built upon shared
values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent
companies and be the yardstick by which all other insurance companies in India are measured.
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required, to manage long-term investments safely and efficiently.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life
owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this is the
maximum investment allowed under current regulations
In India, Standard Life has two joint venture partnerships with HDFC: a life insurance
company HDFC Standard Life Insurance Limited, in which it holds 18.6%, as at 30 September
2006, and HDFC Asset Management Company, in which it holds 49.9%. Standard Life's
holding in HDFC Standard Life Insurance Limited changed during 2006 and the results for the

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period to 30 September 2006 are based on a weighted average holding of 17.7% (9 months to
30 September 2005: 26.0%). Sales for HDFC Standard Life Insurance Company Limited
increased 54%9 to 99m (2005: 65m) of which Standard Life's share was 17m (2005: 17m).

VISION
The most successful and admired life insurance company, which
mean that we are the most trusted company, the easiest to deal
with, offer the best value for money, and set the standards in
the industry.
In short , "The most obvious choice for all".

Core Values
Values that we observe while we work:

Integrity

Innovation

Customer Centric

People Care One For all and all for one

Team work

Joy and simplicity

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KEY POINTS - HDFC Standard Life Insurance

, HDFC Standard Life is now the Companys second largest overseas venture by
customer numbers. It is also the second largest private insurer in India when measured
by customer numbers.

HDFC Standard Life Insurance covers over 693 cities and towns through its offices in
India.

It has over 74,000 Financial Consultants appointed by the company.

HDFC Standard Life Insurance also has 833 corporate agents and other sales
intermediaries including banks for distribution of insurance products.

HDFC SL has more than 276 branches, serving over 693 locations across the country

The company currently has 21 retail and 6 group products in its portfolio.

HDFC Standard Life has covered over 1.6 million individuals.

Number of individual policies sold in the year 2006-2007 is 5,22,982.

Rated by 'Business world' as 'India's Most Respected Private Life Insurance Company'
in 2004

Rated as the "Best New Insurer - 2003" by Outlook Money magazine, Indias number 1
personal finance magazine

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Branches and Number of agents of HDFC SL

300
250
200
150
100
50 3,322
25
0 Mar 02

Branches

Agents

80,000
74,000

70,000
60,000
50,000

23,620
10,500

49
Mar 03

283

33,288

40,000
30,000

18,296

104

169

20,000
10,000

53

0
Mar 04

Mar 05

Mar 06

Mar-07

Serving over 700 locations across the country

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The Retail Sales Hierarchy of HDFC Standard Life

Insurance
General Manager
Head Retail Sales
Zonal Manager
Branch Manager
Assistant Sales Manager
Business Development Managers
Sales Development Manager
Certified Financial Consultants

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SWOT Analysis
Our key strengths
HDFC

Standard Life Insurance

Brand strength

Reputation

Customer base

One of the largest mutual life assuror

Market innovator

around 200years of experience

Local knowledge

large capital base

Financial expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial
expertise required to manage your long-term investments safely and efficiently. It has strong
capital and reserve base.

Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific
needs. Our group solutions have been designed to offer you complete flexibility combined with
a low charging structure.

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Track Record so far

Our cumulative premium income, for the year 2006-07 is Rs 1347.89 cr for individual
premium and Rs 276.35 cr for group.

Well established training Infrastructure

Well established training infrastructure and skilled faculties to take care of technical expertise.

WEAKNESS

Less number of products

Upfront allocation charges on the slightly higher side than its rivals, say Bajaj Allianz

Poor retention percentage of tied up agents.

Though adequate talents are available and are well spread throughout the organization
enough opportunities are not provided to utilize them in the right direction.

Low customer confidence on private players.

OPPORTUNITIES

HDFC Standard Life Insurance can leverage upon setting up Global branches as lot of
Indian going abroad

Booming financial sector.

Catering to niche market with customized solutions.

Huge market is literally untapped. Out of estimated 320 million insurable markets only
25% of the population is insured.

Pension plans are great aspects which need to be covered because of increased number
of people working in private sector who want a financially secure life after retirement.

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Children education plans are every parents priority as cost of education is increasing at
a high pace.

THREATS

Companies with larger workforce.

The company is competing with the State owned big giant like LIC of India.

The company is also facing some threat from existing private players in the industry.

Entry of many other private companies with equal experience of Indian market and
strong financial base of foreign partners are making the competition difficult and
saturating the urban markets.

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POTENTIAL OF INSURANCE BUSINESS IN INDIA

AN OVERVIEW
Insurance is a federal subject in India and has history dating back till 1818. The Insurance
sector in India has gone through a number of phases and changes, particularly in the recent
years when the Govt. of India in 1999 opened up the insurance sector by allowing private
companies to solicit insurance and also allowing FDI up to 26%, now it has been raised to
49%. Ever since, the Indian insurance sector is considered as a booming market with every
other global insurance company wanting to have a lion's share. Currently, the largest life
insurance company in India is still owned by the government.
With the largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually.
Insurance premium for the year 2005 is 23 (US$bn). Together with banking services, it adds
about 7% to the countrys Gross Domestic Product (GDP). Insurance contributes 3.1% to GDP
in 2005. Expected premium from insurance in 2020 is 239 US$bn and its contribution to GDP
will be 7%
Even so nearly 75% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
our population is also subject to weak social security and pension systems with hardly any old
age income security. This in itself is an indicator that growth potential for the insurance sector
in India is immense.
A well-developed and evolved insurance sector is needed for economic development as it
provides long term funds for infrastructure development and strengthens the risk taking ability
of individuals. It is estimated that over the next ten years India would require investments of
the order of one trillion US dollars. The Insurance sector, to some extent, can enable
investments in infrastructure development to sustain the economic growth of the country.

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Insurance potential

PRESENT SCENARIO - LIFE INSURANCE INDUSTRY

IN INDIA

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The life insurance industry in India grew impressive and premium income earned

during the

financial year 2005-2006 is Rs 35897.95and 2006-2007 is Rs 75406.52 cr

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion
have poured into the Indian market and 15 private life insurance companies have been granted
licenses.
Innovative products, smart marketing, and aggressive distribution have enabled fledgling
private insurance companies to sign up Indian customers faster than anyone expected. Indians,
who had always seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer. Some of these products
include investment plans with insurance and good returns (unit linked plans), multi purpose
insurance plans, pension plans, child plans and money back plans.
Competition has well and truly set in the fast-growing insurance sector, barely a year after the
doors were opened for the re-entry of private players.
The new face of the Indian insurance industry is craving for attention. Hoardings and
billboards of the new joint venture private companies gaze at you from everywhere.
Advertisements in newspapers and on television, insurance agents and direct mailers form part
of the campaign vehicle. The dozen-odd life and non-life companies in the private sector are
fighting a quiet but intense battle to make their presence felt to the Indian consumer. Not to be
undone, the public sector companies are trying to match the moves of the private companies.

Number of Branches and Agents of Various

Insurers
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Insurer
HDFC SLI
LIC
ICICI Prudential
Bajaj Allianz
Max New York

No. of Agents
74,000
5,60,000
2,34,000
2,13,000
26,000

No. of Branches
276
2050
589
900
172

o. of Agents

Number Of Branches

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PROFILE OF TALWANDI SABO

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Talwandi Sabo is situated nearly 130 km south east of Chandigarh, the capital city of Punjab.
Besides being an important industrial town of Punjab.

Demographics
Talwandi Sabo had a population of around 1.75 lakh people. In which Males constitute 60% of
the population and females 40%. Talwandi Sabo has an average literacy rate of60%, higher
than the national average of 55.5%: male literacy is 78%, and female literacy is 70%. In
Talwandi Sabo, 15% of the population is under 6 years of age.
Talwandi Sabo is situated on the National Highway No. 64 which has been stretched from
Abhor to Chandigrah . Talwandi Sabo is surrounded by a number of villages. Some of these are
phul town, mandi kalan , mehraj , gill kalan, lehra dhurkot etc.
It is connected to many big cities such as Bathinda ,Barnala, Maur Mandi Chandigarh.
It also has one of the largest Mandi (grain market).More than 75% of working population
belongs to Business Class.

POTENTIAL OF INSURANCE BUSINESS IN TALWANDI SABO

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At present there are 5 Life Insurance Companies Operating In Talwandi Sabo. All these
companies
together done the business of more than Rs 40cr. Except this there are more than 10 banks
selling life insurance in Talwandi Sabo. Some of them are SBI, ICICI, PNB,etc.

Business done by Life Insurance Companies at Talwandi Sabo

in Last Financial Year
Life Insurance Corporation of India (LIC)
Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life
insurance business in India with its Head Office at Mumbai. It has been established by an act of
the Parliament and started functioning from 1/9/1956.
LIC is the biggest insurance player in the country. Out of the total premium of Rs 75406.52
crore generated by the insurance industry through group business in the year 2008-09, LIC
alone accounted for Rs 60933.53crore.
In the financial year 2008-09, LIC has grown at 130% in respect of premium. LIC's market
share in number of policies stands at 85.5% respectively.
In the life Insurance segment the Life Insurance Corporation of India (LIC) is the major player.
The LIC has 2520 branches. It is constituted into seven Zones. Currently there are 5,90,000
LIC agents in India.
LIC was set up in 1972 in Talwandi Sabo. It has around 520 agents and it did the business of
Rs 30 cr in last financial year in Talwandi Sabo.

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ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company limited (the Company) a joint venture between
ICICI Bank Limited and Prudential plc of UK was incorporated on July20, 2000 as a company
under the Companies Act, 1956 (the Act).
Today ICICI Prudential Life Insurance is the 2nd largest life insurance company in the country,
next only to LIC. For the financial year ended March 31, 2008, the company garnered Rs
6033.64 crore of business premiums and wrote nearly 1959575 individual policies and 520
group policies. Today ICICI Life Insurance has a customer base of 4.5 million.
ICICI Prudential has one of the largest distribution networks amongst private life insurers in
India. As of March 31, 2008 the company has over 580 offices across the country and over
3,20,000 advisors. The company has over 22 banc assurance partners.
And it becomes active in August 2006 in Talwandi Sabo. There are 400 agent/advisors at
Talwandi Sabo branch and it has done the business of Rs 2.20cr till June, 2008.

Max New York Life Insurance

Max New York Life Insurance Company Limited is a joint venture between Max India
Limited, a multi-business corporate, and New York Life International, a global expert in life
insurance.
Max New York Life Insurance started its operations in India in 2000. It is the first life
insurance company in India to be awarded the IS0 9001:2000 certifications. Max New York
offers customized products tailored to suit individual's needs. With its various Products and
Riders, there are more than 400 product combinations to choose from.

Bajaj Allianz
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Bajaj Allianz Life provides life insurance services to customers in India. The company is a
joint venture between Allianz and motorcycle maker Bajaj Auto.
Bajaj Allianz Life Insurance has already has a customer base of close to 3.5 million customers.
Currently Bajaj Allianz has a product portfolio of 31 products and more need-based products
are in the pipeline.
It has one of the Largest distribution network to reach the customers across the country with
2,13,000 agents, 900 offices in 840 towns, 200 corporate agents & Bancassurance partners
Bajaj Allianz Life Insurance issued over 2 million (20,78,933) policies in this year highest
amongst all pvt. sector players, taking the number 1 position.
Bajaj Allianz is the first private insurance company in Talwandi Sabo. It was set up in
July,2005. It has network of 170 agents. Business done in last financial year is Rs 1.80cr.

HDFC Standard Life Insurance

HDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC Ltd., India's largest
housing finance institution and Standard Life Assurance Company, Europe's largest mutual life
company. It was the first life insurance company to be granted a certificate of registration by
the IRDA on the 23rd of October 2000. Both the promoters are well known for their ethical
dealings and financial strength and are thus committed to being a long-term player in the life
insurance industry important factors to consider when choosing your insurer.
HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance
companies offering a range of individual and group insurance solutions. HDFC SL has more
than 276 branches, serving over 693 locations across the country. It has over 79,000 Financial
Consultants appointed by the company. For the financial year ended March 31, 2009, the
company garnered Rs 2050.60 crore of business premiums and wrote nearly 583966 individual
policies.

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Business done by Life Insurance Companies in Talwandi

Sabo

S.N
o

No. of
Insurer

1 LIC
ICICI

Set Up In
1972

Business done (Rs)

26cr (April 2006- March

Agents

2007)
1.50cr (Aug, 2006- June

520

2 Prudential

Aug,2006

2007)
50lakh (April 2006-

400

3 Max New York

Oct,2004

March 2007)
1.50cr (April 2006-

60

4 Bajaj Allianz
HDFC

July,2004

March 2007)

5 Standard Life

Jan,2007

40lakh (since Jan, 2007)

170
75

Premium earned by Life Insurance Companies in Talwandi

Sabo
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Analysis
The above chart shows the premium earned by the insurer companies for last 6 months. LIC
capture the largest market share in terms of premium. ICICI

Prudential, though new in

Talwandi Sabo has earned the premium which is second largest amount with respect to private
players. Whereas Bajaj Allianz is next to LIC and leading private player in terms of premium
earned.

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Business done by Alternate channels

(Banks) in Talwandi Sabo in Last Financial
Year
Business
Banks

Insurance Policy

done

SBI
Kotak

SBI Life

25 lakh

mahindra

OM Kotak

3.3 cr

HDFC

HDFC SL

5.20cr

ICICI

ICICI Prudential

30 lakh

CBOP

Aviva Life

1.20 cr

Premium earned by alternate channel (banks) in Talwandi Sabo

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INTRODUCTION
A Research Design is the framework or plan for a study which is used as a guide in collecting
and analyzing the data collected. It is the blue print that is followed in completing the study.
The basic objective of research cannot be attained without a proper research design. It specifies
the methods and procedures for acquiring the information needed to conduct the research

42 | P a g e

effectively. It is the overall operational pattern of the project that stipulates what information
needs to be collected, from which sources and by what methods.

STATEMENT OF THE PROBLEM

.
Study the Potential of insurance business in India.

OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some and my
study is also based upon some objective and these are as follows.
1. To understand the potential of insurance business in India.
2. To find out the insurance business done by Life Insurance Companies at Talwandi
Sabo.
3. To find out the insurance business done by Alternate channels.
4. To find out untapped areas near Talwandi Sabo.

SCOPE OF THE STUDY

The study is related to search the potential of insurance business in India. The scope of study is
specific to the area of Talwandi Sabo (Punjab). For this a survey was conducted in which
explains about the business done by various insurance companies and alternate channels to find
out competitors share in Talwandi Sabo. It studies how HDFC SL can motivate people and

43 | P a g e

increase its sale at Talwandi Sabo. It tells the problem faced in marketing of products and
suggestions to overcome the problem.

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific
topic.
The word research has been derived from French word Researcher means to search.
FRANCIES RUMMER defined Research: It is a careful inquiry or examination to
discover new information or relationship and to expand or verify existing knowledge.
Research is the solution of the problem, whether created or already generated.

PROJECT DEFINITION
Life insurance is designed to protect you and your family against financial uncertainties that
may result due to unfortunate demise or illness. You can also view it as a comprehensive
financial instrument as a part of your financial planning offering you savings & investment
facilities along with cover against financial loss. By choosing the right policy as per your needs
i.e. customized solutions, you will be able to plan for a secure future for yourself and your
loved ones. This project is an attempt to study the Potential of insurance business in
Talwandi Sabo.

RESEARCH DESIGN
Research Design is the conceptual structure within which research is conducted. It constitutes
the blueprint for collection, measurement and analysis of data. The design used for carrying out
this research is Descriptive.

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DATA COLLECTION DESIGN

i.

Sources of Data
Both primary and secondary source of data has been used to collect information.

Primary data was collected from agents and other designated officers such as unit
managers, etc. The data explained about the business done by insurance companies and
other alternate channels in last year at Talwandi Sabo. Questionnaire was prepared to
study the scope for insurance business at Talwandi Sabo and awareness among the
people about new private insurance companies operating in Talwandi Sabo.
(Questionnaire is attached as annexure and interpretation is given).

Secondary data was collected by making extensive use of the internet. The data was
also collected from various newspapers, journals, publications and magazines, annual
report etc.

ii.

Technique of Data Collection

Data was also collected by personally interviewing the agents and other designated
officials of different organizations and through questionnaire.

SAMPLING
Sampling refers to the method of selecting a sample from a given universe with a view to draw
conclusions about that universe. A sample is a representative of the universe selected for study.
Convenience sampling is used in exploratory research where the researcher is interested in
getting an inexpensive approximation of the truth. As the name implies, the sample is selected
because they are convenient. This non probability method is often used during preliminary

45 | P a g e

research efforts to get a gross estimate of the results, without incurring the cost or time required
to select a random sample.
SAMPLE SIZE
The sample size for the survey conducted was 100 respondents.
SAMPLING TECHNIQUE
Convenience sampling technique was used in the survey conducted.
ANALYSIS AND INTERPRETATION:
Data collection through questionnaire and personnel interview resulted in availability
of the desired information but these were useless until there were analyzed. Various
steps required for this purpose were editing, coding and tabulating. Tabulating refers to
bringing together similar data and compiling them in an accurate and meaningful
manner. The data collected by questionnaire was analyzed, interpreted with the help of
table, bar graph and pie chart.

46 | P a g e

MARKETING PROBLEMS
The old and out dated technique of tele marketing is used to prospect customers. More modern
techniques must be adopted. The company must sponsor shows and give presentations in
corporate houses. The financial health check must be performed for every prospect to assess
his/her true financial position and needs. Some of the advisors skip this vital step and the
prospect ends up with a plan they do not appreciate and soon surrender or discontinue.
Some of the main problems in marketing the policies are:
Large amount of competition (15 players in the market)

47 | P a g e

 LIC is considered a safer option

Face competition from banks and mutual funds
High premium policies are difficult to market
Incorrect perception about insurance
Interested prospects might have a lack of time and postpone investments
Customers get defensive if you cold call
Short term plans are available only at large premium
Some Customers do not have risk appetite to invest in shares
Consumers dont want to undertake medical examinations
Large amount of documentation
Customers do not like their money locked up for many years
Lack of awareness about the unit linked funds in the market

ANALYSIS & INTERPRETATION

A SURVEY ON THE LIFE INSURANCE INDUSTRY IN INDIA\

AGE GROUP OF AGENTS

Age
18-25yr

No. of respondents
11

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25-35yr

24

35-45yr

30

Above 45yr

35

Age group of agents

40
35
30
25
20

35

15

No.of respondents

30

24

10
5
0

11
18-25yr

25-35yr

35-45yr Above 45yr

Interpretation
From the chart given above we can clearly see that 40% respondents say that maximum
number of agents belongs to age group of above 45year and 35% respondents feel maximum
number of agents lie between age group of 35-45yr whereas minimum number form the age
group between 18-25years.
AWARENESS AMONG PEOPLE ABOUT PRIVATE INSURANCE COMPANIES
OPERATING IN BATHINDA

AWARENESS

No. of Respondents

Yes

71

No

29

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Awareness about Private insurance companies operating in

Sangrur
29%
Yes
No
71%

Interpretation
71% of respondents say that people of Talwandi Sabo are aware of all the private insurance
players working in Talwandi Sabo. But still 29% respondents are against it.
Awareness among people about private insurance companies is not there. So its a grand
opportunity to tape the attention of those unaware people.
Similar is the case in Talwandi Sabo, HDFC SL can target those unaware people to increase
sale.

Ranking of insurance companies on the basis of their

awareness among the public

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LIC
HDFC
SLI

Bajaj
Allianz

ICICI
Prudential

Max
New
York

People preferred to made investments in

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INVESTMENT

No. of respondents

Bank deposits

40

Mutual Funds

Insurance Plans

12

P.O Deposits

37

Do not invest

If other, specify

Interpretation
Maximum people invest in either banks or post offices; as these people feel banks and P.O
deposits to be the safest one. They prefer security than increase of wealth. Only 8% invest in
mutual funds and 12% of respondents say that people preferred insurance for investment.
This low rate of investment in insurance sector is basically misperception, lack of awareness
and lack of proper information about the insurance among the people.
PEOPLE TAKE LIFE INSURANCE AS

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Life insurance as

No. of respondents

A tax saving plan

55

Saving schemes with good returns

28

Financial security for family

17

Interpretation
As the chart shows, 55% respondents are of the view that general public take insurance as tax
saving plan. 28% are of view that people purchase insurance because it provides savings with
good returns and 17% take it as financial security for family.
New plans which provide all the above benefits such as ULIP can help in changing perception
of people from tax saving scheme to a good investment opportunity, which provide the benefit
of risk cover, tax saving and investment.

Plans in more Demand

53 | P a g e

Plans

No. of respondents

Unit Link Insurance plans

71

Whole Life Plans

Childern Plan

16

Pension Plan

Term Plan

7% 2%

Unit Link Insurance

plans

16%

Whole Life Plans

4%

Child Plan
Pension Plan

71%

Term Plan

Interpretation
80% respondents are of the view that ULIP plans are more demanded by people because it
provides tax benefits, risk coverage as well as good return. Least popular among them are
Pension plan, Whole life plan and Term plan. These hold 5%, 2%, 1% respectively of the total
demand. Rest of the 12% say that maximum plan in demand is Children Plan.

Segment preferred by people while investing in ULIP

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Segments
100% equity
100% debt
Both debt and equity

Respondents view
48
8
44

Interpretation
48% of respondents are of view that people prefer 100% equity segment while investing in
ULIP plans because they want to earn more profits in less time. On the other hand, only 8% of
respondents are of view that people refer 100% debt investment. Such category includes retired
and old people and people with conservative nature. Where as 44% of respondents feel that
people prefer to invest in the segment of both debt and equity as these are balanced people who
prefer both security and profit.

Amount of premium invested by people

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Amount of Premium (p.a)

Rs 10,000 -25,000
Rs 25,000 - 50,000
Rs 50,000 - 1,00,000
Rs 1,00,000 and above

40

32

No. of respondents
32
35
23
10

35
23

30
20

10

10

No. of respondents

0
Rs 10,000
Rs 25,000
-25,000
Rs 50,000
- 50,000
- 1,00,000

Rs
1,00,000
and above

Interpretation
From the chart above we find that, 35% of the respondents are of the view that annual premium
of Rs 10,000 -25,000 are more preferred by people. 38% respondents give maximum
weightage to premium amount between Rs 25,000 -50,000 whereas 30% and 10% respondents
feel Rs 50,000-1,00,000 and above 1,00,000 are more preferred premium amounts.
Hence we can safely say that HDFC Life insurance would be able to capture the market better
if it introduced products/plans where the annual premium should be between
Rs. 10,000 50,000 p.a.

Expected insurance business to be done in Talwandi Sabo

Expected business
Rs 1cr - 10cr

No. of respondents
20

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Rs 10cr - 30cr
Rs 30cr - 35cr
Rs 35cr and above

35
35
10

Interpretation
20% of respondents feel that in next financial year the insurance industry will do the business
between Rs 1-10 cr, 35% say Rs 10-30 cr, 35% feel amount of Rs 30-35 cr as premium income
will be earned by insurance sector, whereas only 10% are in favour of earning more than Rs 35
cr in next financial year.

Average amount of business done by an agent in Talwandi Sabo

Amount of business
Less than Rs 10 lakh
Rs 10 lakh - 20 lakh
Rs 20 lakh - 30 lakh

No. of respondents
82
10
5

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More than Rs 30 lakh

100
90
80
70
60
50
40
30
20
10
0

82

No. of respondents

10

Less than Rs 10 lakh Rs 20 lakh More than

Rs 10 lakh - 20 lakh
- 30 lakh Rs 30 lakh

Interpretation
100% respondents say that an average agent does the business less than Rs 10 lakh in an year.
Only 10% does the business between Rs 10-20 lakh and 5% between Rs 20-30 lakh and 3%
above Rs 30 lakh.
So, it can be interpreted that the business can be increased to a greater extent only by
increasing number of agents.
Thus it can be said agents are main source of insurance business.

Minimum number of policies that can be easily sold by an agent

No. of policies
Below 20
20-40
40-60
60-80
Above 80

No. of respondents
65
18
8
5
4

58 | P a g e

Interpretation
65% of respondents say that number of policies that can be easily sold is below 20. 18% say
that 20-40 policies can be easily sold whereas 8% and 5% respondents feel that minimum
number of policies which can be easily sold is between 40-60 and 60-80 respectively. Only 4%
respondents feel that minimum policies which can be easily sold is above 80.

Categories to which maximum number of policies are sold

Categories of people
Service Class
Business Class
Agriculturists
Retired people
Housewives
Others

No. of Respondents
35
20
25
10
5
5

59 | P a g e

Interpretation
Above chart shows that maximum number of policies is sold to Service class. Though most of
the population of Talwandi Sabo belongs to business class but only 20% of respondents say
that max. policies are sold to this class. Business class people can increased by providing
proper information about ULIP plan which covers investment, risk coverage as well as tax
benefits.
Talwandi Sabo is surrounded by number of villages but still only 25% respondents say that
agriculturist contribute maximum to our policies. There is a lot of opportunity in villages as
those people have enough money to invest but they are not aware about insurance. Therefore
proper awareness, knowledge and good advisor can easily tape the opportunity.
Only 10% respondents say that category to which max. policies are sold is retired people.

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Factors that motivate people to purchase Insurance policies

Factors of motivation
High Returns

No. of Respondents
10

Advertisements

Family Responsibility

Advice from friends and relatives

Agents/advisors

76

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Interpretation
76% 0f respondents say that most motivating factor that influences people to buy insurance
plan is advice from agents. It is very clear from diagram that agents are backbone of insurance
industry.
Only 10% respondents say that high returns motivate max. to people whereas 14% respondents
feel that advertisements, family responsibility, friends and relatives advice motivate most of the
people to purchase insurance plan.

Ways to increase sale of insurance policies at Talwandi Sabo

Sale of policies
Alternate channels
Awareness campaign
Launching innovative products
Promos
local cable Ads

No. of Respondents
36
25
24
10
5

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Interpretation
36% of respondents say that sale of insurance can be increased through alternate channels such
as bank; corporate agencies etc. 25% respondents feel it can be increased by increasing
awareness among people of Talwandi Sabo as local people are not fully aware about all insurer
companies and their schemes. So, its an opportunity for HDFC SL to target those unaware
people and increase its sale.

Disadvantages of an insurance plan

Disadvantages
Lapsation
Fixed term
High charges
Poor aftersale services

No. of Respondents
7
28
43
22

63 | P a g e

Interpretation
43% respondents say that the main disadvantage of insurance plans is high charges.
22% feel poor aftersale services, 28% say fixed term and 7% say lapsation are the main
disadvantage in insurance plans.
Charges can be reduced and aftersale services can be improved to remove its disadvantage.

FINDING

Maximum number of insurance agents belongs to age group of above 45yr. It is good
for insurance industry as the people above 45yr of age are more responsible and sincere
and thus there turnover is low.

There is lack of awareness among people about private insurance companies. And still
people prefer LIC as compared to other pvt. insurer companies.

64 | P a g e

Today also people preferred to invest in Banks and P.O Deposits as they prefer certain
returns with less profit. But as the perception of people are changing, people started
investing in insurance sector also (specially in ULIP plans).

Maximum people take insurance as tax saving plan but now insurance provide other
benefits also as Financial security, risk coverage and good returns.

Maximum plan which is more in demand is Unit Link Insurance Plan as because it
provides all benefits as risk coverage, financial security, tax saving etc. and people
which want to earn more in less time prefer the segment of 100% equity.

Average amount of premium which is generally invested by people is between

Rs 25,000-Rs 50,000. So, such plans should be introduced whose annual premium
should be between Rs25,000-30,000.

Maximum numbers of policies are sold to Service class people and Percent of Business
class people is comparatively low.

Suggestion and Recommendations

Life Insurance sector is one of the key areas where enormous business potential exists. In
India currently the life insurance premium as a percentage of GDP is 3.1% per cent against
9.2% per cent in the US, but in the liberalized scenario, the life insurance

65 | P a g e

premiums were projected to grow at around 18% to 20% from 23US$ billion in 2005 to
239US$ billion by 2020. Insurance business share in the market can be increased by:_ Win through exceeding customer expectations - 'Under promise and over deliver should be
the motto.
_ Win through product innovation and continuous product improvement.
_ Win through better and speedy service and problem solving.
_ Win through competitive pricing but do not sacrifice on value added
service.
_ Win through adaptation and customization.
_ Win through entering niche markets.
_ Win through market share - the three I's - Institutions, Instruments and
Intermediaries are going to be relevant.
Company will be required to not only do better at all times; it will also need
a strong and robust strategy which would be operationally more effective then that of their
competitors.
In today's marketing scenario in insurance, we need to move from selling insurance to
marketing an essential financial product.

LIMITATIONS OF THE STUDY

This summer project has given me ample exposure to real market situations and at the same
time it also gave me the scope to interact directly with the insurance agents and other
designated officers such as unit managers, sale manager etc.. However, in the course of my
project i faced certain difficulties, which prevented me from performing as i wished to. The
chief reasons that I could call limitations in my project can be enumerated as below:

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 The study was limited only to the city of Talwandi Sabo only.
The study was conducted only for a short period of time.
The study is based on the assumption that information provided by the respondents is true.
Lack of financial resources.

Conclusion
The Insurance sector, after the opening up, provides greater opportunities. Several global
players have emerged and the market has changed significantly. In the changed scenario, the

67 | P a g e

expectation is that the low Insurance premium as a percentage of GDP prevailing in India will
improve and will offer better opportunities to the insurance players.
Some of the findings of research are:Maximum number of insurance agents belongs to age group of above 45yr. It is good for
insurance industry as the people above 45yr of age are more responsible and sincere and
thus there turnover is low.
There is lack of awareness among people about private insurance companies. And still
people prefer LIC as compared to other pvt. insurer companies.
Today also people preferred to invest in Banks and P.O Deposits as they prefer certain
returns with less profit. But as the perception of people are changing, people started
investing in insurance sector also (specially in ULIP plans).
Maximum people take insurance as tax saving plan but now insurance provide other
benefits also as Financial security, risk coverage and good returns.
Maximum plan which is more in demand is Unit Link Insurance Plan as because it provides
all benefits as risk coverage, financial security, tax saving etc. and people which want to
earn more in less time prefer the segment of 100% equity.
Average amount of premium which is generally invested by people is between

Rs

25,000-Rs 50,000. So, such plans should be introduced whose annual premium should be
between Rs25,000-30,000.
Maximum numbers of policies are sold to Service class people and Percent of Business
class people is comparatively low.
Agents are most motivating factor who convinces the people to purchase the insurance
plan. So, more agents mean more sales.
People feel high charges as disadvantage of insurance. So, steps should be taken to remove
such disadvantages as far as possible.

BIBLIOGRAPHY

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BOOKS:
1.

Business Research Methods

(willam g. Zikmund)

2.

Marketing research
(Naresh Malhotra)

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Questionnaire
A SURVEY ON
POTENTIAL OF INSURANCE BUSINESS
QUESTIONNAIRE FOR AGENTS AND OTHER INSURANCE OFFICERS
(I EXPECT A FAIR RESPONSE FROM YOU)

1. Agents generally belong to which age group?

o 18yr to 25yr

o 35yr to 45yr

o 25yr to 35yr

o above 45yr

2. Are people aware of all private insurance companies operating in Talwandi Sabo?
o Yes

o No

3. Rank the following insurance companies on the scale of 1 to 5 on the basis of

their awareness among public?
o ICICI Prudential

o Max New York

o LIC

o Bajaj Allianz

o HDFC SLI
4. In which of the following do the people invest?
o

Bank Deposits

Post Office Deposits

Mutual Funds

Do not invest

Insurance Plans

If other, specify ________

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5. How people take life insurance as,

o A tax saving plan
o A saving scheme with good return
o A financial security for the family
o Risk coverage

6. Which of these plans are in more demand?

o Unit link insurance plans

o ension plans

o Whole life plans

o Term Plan

o Child plans
7. While investing in ULIP, which segment of investment fund do people prefer to
invest?
o 100% equity
o 100% debt
o Both debt and equity

8. Amount of premium generally invested by the people?

o Rs 10,000 25000

o Rs 50,000.-1,00,000

o Rs 25,000 - 50000

o Above Rs 1,00,000

9. What is the expected total insurance business that can be done in Talwandi
Sabo in next year?

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Rs 1cr to 10 cr

Rs 30cr to 35 cr

Rs 10cr to 30cr

Rs 35 cr and above

10. Average amount of business done by an agent in Talwandi Sabo?

o Less Than Rs 10 lakh
o Rs 10 lakh to 20 lakh
o Rs 2o lakh to 30 lakh
o More than Rs 30 lakh
11. Minimum number of policies that can be sold in a year by an agent?
o 10 to 40

o 80 to 100

o 40 to 60

o Above 100

o 60 to 80
12. Maximum numbers of policies are sold to which categories of people in Talwandi
Sabo?
o Service class

o Retired people

o Business class

o Housewives

o Agriculturist

o Others

13. Factors that motivate respondents to purchase insurance?

o High returns
o Advertisements
o Family Responsibility

o Advice from friends or

relatives.
o Agents/advisors

14. How the sale of policies (insurance business) at Talwandi Sabo can be increased?
o Alternate channels
o Awareness campaigns

o Launching innovative
products
o Promos

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o Local cable ads

15. According to you, what are the disadvantages in an insurance plan?

o Lapsation

o High charges

o Fixed term

o Poor aftersale services

16. Suggestion, if any ________________________________________

Personal Details:
Name:
Gender:
o Male

o Female

Age group:
o 18 25 years

o 50 60 years

o 26 35 years

o Above 60 years

o 36 49 years
Profile of respondent:
o Agent
o Sales manager
o Other designation, specify____________________

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